Qualcomm Files Complaint in China Court Against Smartphone Maker Meizu

Advertisement
By Reuters | Updated: 24 June 2016 12:19 IST
Qualcomm Inc has filed a complaint in a Chinese court against smartphone maker Meizu Technology Co after the tech giant said it was unable to reach a licensing accord with one of the top 10 handset suppliers in its biggest market.

The filing by San Diego-based Qualcomm, submitted to the Beijing Intellectual Property Court on Friday, is the first legal action by Qualcomm as it seeks to uphold terms of its landmark 2015 anti-trust settlement with China's economic policy panel, the National Development & Reform Commission (NDRC). Qualcomm agreed to pay a fine of $975 million in the settlement, the largest in China's corporate history.

The complaint against Meizu asks the court to affirm that Qualcomm's terms for a patent license agreement complies with China's anti-monopoly law and the company's fair, reasonable, and non-discriminatory licensing obligations under its 2015 remediation agreement with the NDRC, the company said.

Reuters could not immediately contact officials at Meizu for comment.

Advertisement

Don Rosenberg, Qualcomm's general counsel, said in a telephone interview that the firm has negotiated extensively and in good faith with Meizu to sign a patent license agreement consistent with the terms of the rectification plan submitted by Qualcomm to, and accepted by the NDRC.

Advertisement

"There's no question that Qualcomm's intellectual property has been used and we have not been properly paid," Rosenberg said. He said Qualcomm was not focused on damages, but on leveling the playing field for everyone in China.

Meizu, located in the southern Chinese city of Zhuhai, was China's eighth-biggest smartphone maker in 2015, shipping 24.82 million devices for the year, according to IDC data.

Advertisement

China is Qualcomm's most important market, making up 53 percent of global revenue of $25.28 billion for the fiscal year ended Sept. 27, with a large chunk of profit coming from higher-margin royalties earned from the company's licensing arm.

As part of its 2015 settlement with the NRDC, Qualcomm agreed to a plan that modified its business practices in China.

Advertisement

The company has since signed more than 100 Chinese handset manufacturers to licensing agreements under the new terms, but has said it continues to struggle with a handful of key original equipment manufacturers.

"We remain in active discussions with the few key Chinese OEMs that have not yet signed and believe we are making progress in those discussions," Qualcomm CEO Steve Mollenkopf said on a telephone conference call in April.

Qualcomm has also been seeking to deepen its presence in the Chinese market by transferring technology and investing in next-generation chip manufacturing.

© Thomson Reuters 2016

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Meizu, Mobiles, Qualcomm
Advertisement

Related Stories

Popular Mobile Brands
  1. Redmi Note 15 Series India Launch Timeline Tipped
  2. Poco Pad M1 Tipped to Come With These Specifications
  3. Vivo X300 Series India Launch Date Announced
  4. Tim Cook Could Be Replaced as Apple CEO By This Employee Next Year
  5. BSNL Silver Jubilee Prepaid Recharge Plan Offers These Benefits
  1. Tim Cook to Reportedly Step Down as Apple CEO in 2026; Successor to Be Announced After January
  2. Vivo X300 Series India Launch Date Announced: Here's What to Expect
  3. Redmi Note 15 Series India Launch Timeline Tipped; Redmi 15C Could Debut This Month
  4. Poco Pad M1 May Come With Snapdragon 7s Gen 4 Chip and 12,000mAh Battery; Price Tipped
  5. BSNL Announces Silver Jubilee Prepaid Recharge Plan With 2.5GB of Daily Data and More Benefits
  6. Blue Origin Joins SpaceX in Orbital Booster Reuse Era With New Glenn’s Successful Launch and Landing
  7. AI-Assisted Study Finds No Evidence of Liquid Water in Mars’ Seasonal Dark Streaks
  8. Bison OTT Release Date Reportedly Revealed Online: When and Where to Watch it Online?
  9. Kathleen Madigan: The Family Thread OTT Release Date: When and Where to Watch it Online?
  10. All Her Fault Now Streaming on OTT: Know Where to Watch it Online
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.